1 Problem 4:6 marks (15 minutes) 2 Excel Inc. has provided the following information relating to its sales for the past year, which ended 3 December 31, 20x1. 4 5 6 Estimated % of accounts receivable that will be uncollectable 4% 7 8 Opening Balances: 9 Jan. 1, 20x1 balance in the allowance for doubtful account $2,000 cr 10 (this is before any adjusting entries) 11 12 Jan. 1, 20x1 balance in the accounts receivable account $37,000 dr 13 14 During 20x1: 15 Credit sales (20x1) 16 Write offs of uncollectible accounts receivable (20x1) 17 Collections of previously written off amounts (20x1) 18 Cash received in payment of accounts receivable (20x1) 19 20 21 Required- 22 23 1) Calculate the balance in the Accounts Receivable account at December 31, 20x1. (1 mark) 24 $450 000 $6 200 $900 $426 000 25 2) Calculate the balance in the Allowance for Doubtful Accounts at December 31, 20x1. (2 marks) 26 27 3) Prepare any journal entries required at December 31, 20x1 to record bad debt expense for the year. (3 marks) 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51